The Municipality of Vlasotince has been authorized to alienate a plot of land worth RSD 10.3 million, without compensation, as help to the investor Gruner Serbian.
The company will build a production facility and employ 200 workers permanently, as said in the decision of the Commission for Control of State Aid.
Gruner Serbian, headquartered in Vlasotince, will get a subsidy in the form of a free plot of land of 8,186 m2 for an investment worth EUR 1.5 million.
According to the plans, Gruner will build a facility for the production of metal parts, and provide a banking guarantee for the subsidy for a five-year period for an amount of 10.3 million, the value of the land estimated by the Tax Administration.
The decision on the authorization of state aid, which aims at regional development in Vlasotince, is accompanied by the proposal of the decision of the Government of Serbia, the feasibility study, the business plan and the decision of the municipality's approval.
As said, Germany's Gruner is one of the world leaders in the production of relays.
In Serbia, it has invested EUR 12.5 million in four investment cycles and created a total of 530 jobs.
The core activity of Gruner Serbian is the production of power distribution equipment and power management equipment.